Utah Exempting Car Wash Services Beginning July 1, 2017

The Utah Governor recently signed Senate Bill 16 into law. The law creates a new sales tax exemption for the service of cleaning or washing the exterior of a vehicle, beginning on July 1, 2017. However, an important exception exists. If the service includes any charges related to cleaning the interior of the vehicle, then the charge will become taxable. So, for example while a traditional “car wash” may be properly exempt, detailing services would be taxable.

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